A good investment can eventually change your entire life, but with so many things to invest in nowadays, we tend to waste a lot of time in the front of our drawing board or essay on finance topics or surfing through essay on finance topics, so that we find the best investment.
However, the hard part comes only when you choose what type of product or service you want to go with and invest some of your hard-earned money in. Until you reach that, there are around two first things between which you have to decide, namely if you want to invest in a service or in a shop.
Because the market changes every day, one couldn’t decide on the spot whether a service or a shop is a better investment. That’s why, today, we have decided to make that first choice easier for you – and, therefore, provide you with questions and answers that would help you find out which one is better.
Important Pre-Investment Questions
Before making your investment, you should sit down and think through everything that’s possible about the thing you want to invest in. You have to do some research and find out if it’s really worth it, if the market is not already full of products of the type you want to sell, and so on.
If you want to invest in something, you will, obviously, first thing at the products and services you wish to sell on it. Here are some guidelines that will help you decide if the product or service you have in mind is a good choice.
- Determine if the products or services you want to sell are some that you like, use or consume, and actually benefit from.
- Then, see if you really like the product or service that you want to sell; if you plan on selling something you despise, you are going to have a hard time marketing it.
- Imagine that you were shopping, online or in-store, and determine how excited would you be if you found the product or service that you want to sell while shopping. If this gets you excited, that means it might be a good choice for you.
- Most important, think if you would actually look for, buy, and use the product or service that you want to sell. If it is something that benefits you, then it is surely something that would benefit others as well.
- Now, think if you would want to sell your product or service to your family, friends, and other acquaintances. These are the people you know best, and if you know they wouldn’t like it, then it is probably not a good choice.
- Determine for how long you would be able to sell this product or service. Do you want your business to die in a couple of years, or do you want an investment that would work in the long-term?
Now, this was more of a self-analysis that you have to make before choosing a product or service to sell. After doing it, you’ll ask some questions from the customer’s point of view – in order to find out if the product or service is really worth it.
- When it comes to the customer itself, what is the product or service able to do for him or her? What can it preserve, avoid, or achieve? How would it benefit your customer?
- Is the work or life of the customer going to be improved in a certain way after he buys your product or service? Can the latter change anything in his or her life?
- Which is your target audience? Who do you want this product to mainly go to? This is very important because you also have to develop your marketing strategies according to the target audience.
Ruling out the investor and the customer, it’s time to ask some questions – and get some answers – about the product or service you want to tell. Specifically, you’d want to know what their position in the current market is.
- Is the product or service that you want to sell demanded on the market? Moreover, would it still be demanded, and actually bought by people, at the price you will charge for it?
- Is your product or service being demanded in high quantities? You’d like to go for an in-between answer, as you wouldn’t want to find yourself in an oversaturated market or in one that has little to no demand.
- Is the demand stable – could you actually advertise, sell, and deliver your product or service at a fair price?
The Bottom Line
The conclusion is that one can never know whether it’s better to invest in a service or a shop. This decision is revealed to the investors after they have done a proper research of the market.
For example, after choosing a product, one might find that there is no demand for it at all – in this case, it would be better for the investor to reorient him or herself to another product, or even to a service.
Answering the questions displayed above will give you a head start in this whole investment thing and will help you decide if you are going to be successful or not.